Category: Guides

Are you looking for a secure and user-friendly crypto wallet to manage your crypto assets efficiently? 

Discover Trust Wallet, a non-custodial cryptocurrency wallet empowering you to take control of all your digital assets, from crypto coins to non-fungible tokens (NFTs). Trust Wallet offers multiple features, including support for Web3 capabilities, decentralized exchange (DEX) integration, staking, swaps, and more.

Our comprehensive review will delve deep into the features, security measures, and user experience Trust Wallet offers, helping you determine if it’s the right fit for your needs.

What Is Trust Wallet?

Trust Wallet is a decentralized, non-custodial, multi-crypto wallet app, providing users with complete control over their digital assets. It’s Binance’s official cryptocurrency wallet available as a free download on Android and iOS devices via the Play Store and App Store and a browser extension for Chrome, Brave, Opera, and Edge browsers.

Trust Wallet supports over 70 blockchains and 9+ million crypto assets, including NFTs.

Unlike custodial wallets that require you to trust a third party with the custody of your assets, Trust Wallet puts you in complete control. It operates as a non-custodial wallet, enabling you to retain ownership and control of your private keys at all times. This empowers you to securely store, send, receive, stake, trade, store, and purchase crypto without relying on intermediaries.

As a decentralized wallet, it leverages blockchain technology to ensure users have direct control over their funds, eliminating the risks associated with centralized platforms. Trust Wallet provides a decentralized platform for asset management without relying on a central authority or server to operate.

It boasts a user-friendly interface enabling users to directly use decentralized applications (DApps) on the Trust Wallet mobile app, further expanding their Web 3 experience.

By integrating with leading DApp platforms, Trust Wallet enables you to seamlessly interact with myriad decentralized services, such as decentralized exchanges (DEXs) and decentralized finance (DeFi) protocols. This opens up a world of possibilities for you to engage in decentralized trading, lending, staking, and more, all from the convenience of the Trust Wallet app.

How Does Trust Wallet Work?

Trust Wallet creates a bridge between blockchains and their respective nodes, facilitating the secure storage of cryptocurrencies within their respective public addresses. As a decentralized and non-custodial wallet, it doesn’t possess or exercise control over users’ cryptocurrency holdings; instead, it grants users direct access to their assets.

Trust Wallet DApp Browser

Trust Wallet provides a built-in Web3 DApp browser, enabling users to interact seamlessly with Ethereum-based and Binance Smart Chain-based DApps. Users can directly access DEXs, DeFi applications, and blockchain-based games using the Trust Wallet app without signing up for each DApp.

Trust Wallet vets all integrated DApps to ensure a certain level of trustworthiness and quality for users. Supported DApps include Uniswap, PancakeSwap, and OpenSea.

Plus, Trust Wallet provides developers with a user-friendly API specifically designed to facilitate the creation of multi-chain DApps.

Trust Wallet Built-in DEX

Trust Wallet offers users the convenience of a built-in decentralized exchange (DEX), enabling them to buy, sell, and swap cryptocurrencies with a few clicks directly on the Trust Wallet app. The DEX integrates with various payment systems and platforms, such as Binance DEX, THORChain, 1Inch Network, and Kyber Network, to facilitate seamless trading and exchange options.

The built-in DEX provides access to multiple DEXs and facilitates interchain and cross-chain swaps, expanding the range of trading options for users.

Additionally, the DEX’s integration with the Venus Protocol enables users to receive liquidity mining rewards and securely store Binance Smart Chain assets, including pegged ETH and XVS, directly in their wallet.

Trust Wallet Token (TWT)

Trust Wallet Token (TWT) is the native cryptocurrency of Trust Wallet available on different blockchain networks. TWT holders enjoy certain advantages within the Trust Wallet app, such as conversion and transaction fee discounts. TWT also functions as a governance token, enabling holders to actively participate in the governance of Trust Wallet and vote on decisions like new features, tokens, and support for the network.

How to Set Up Trust Wallet?

Download the Trust Wallet app from App Store or Play Store on your mobile devices or install it as a browser extension on Chrome, Brave, Opera, and Edge browsers at: https://trustwallet.com/browser-extension

Follow the easy steps below to create a Trust Wallet account:

• Select “Create a new wallet” and press “Continue” to accept the Terms of Service and Privacy Policy.
• Create a six-digit password as your secret security code to access the wallet.
• A new screen will appear, prompting you to write down your secret recovery phrase, consisting of 12 words. This phrase is the only way to recover your wallet once you lose access to it, so keep it in a safe, private place.
• Write the phrase to verify that you backed up your recovery phrases.
• Congratulations! Your wallet was successfully created.

Is Trust Wallet Safe?

Trust Wallet is a highly secure hot wallet, incorporating military-grade encryption and bank-level security measures. The wallet is secured with Touch ID and Face ID implementation, although it lacks a two-step verification process.

As a decentralized wallet prioritizing user privacy and security, Trust Wallet doesn’t require KYC verification.

Trust Wallet is a non-custodial wallet that doesn’t store any user information, giving users complete control over their private keys. As the sole custodian of your private keys, you’re responsible for keeping them safe. Plus, since cryptocurrencies operate on a decentralized network, lost funds can never be recovered. However, Trust Wallet provides a solution for recovery or backup of your funds in the event of device loss or mishap. It offers a seed or recovery phrase, a series of random words generated by your cryptocurrency wallet, for backup purposes. This backup mechanism adds an extra layer of protection and peace of mind for a Trust Wallet owner. So it’s crucial never to share your seed phrase with anyone or create a digital copy of it to avoid a permanent loss of funds. 

Users have the option to store their private keys locally on their devices conveniently, and Trust Wallet won’t reveal the key when signing transactions automatically.

While Trust Wallet provides a secure system, it’s essential to acknowledge that it’s a hot wallet, i.e., it can be accessed via an internet connection.

Hot wallets are susceptible to phishing scams. Phishers can gain unauthorized access to users’ wallets by exploiting phishing websites to steal seed phrases. To mitigate risks, users should beware of fraudulent websites designed to mimic official wallet platforms and ensure they’re on the official Trust Wallet website before signing in.

Moreover, since Trust Wallet is a mobile wallet, if you were to lose your mobile device and someone gains unauthorized access to it, your funds could potentially be lost forever.

To avoid seeing your crypto wallet balance suddenly drop to zero, you may want to consider storing your funds in hardware or cold wallet. Hardware wallets provide offline storage, significantly reducing the risk of unauthorized access or theft.

While Trust Wallet offers significant advantages such as multi-coin support and flexible transactions, hardware or cold wallets remain the preferred crypto wallets for individuals seeking the utmost security for their long-term investment objectives.

Trust Wallet’s Features

Trust Wallet offers multiple features, along with the built-in Web3 DApp browser and the built-in decentralized exchange (DEX), enabling users to buy, sell, and swap cryptocurrencies directly on the Trust Wallet app.

Let’s explore the key features of Trust Wallet in detail below.

• Multi-coin Support: Trust Wallet supports the main blockchains within the Ethereum ecosystem and also functions as a Bitcoin Wallet. It has recently introduced support for Binance Smart Chain, expanding the range of compatible cryptocurrencies.
  Trust Wallet also allows you to store stablecoins conveniently.
  The Trust Wallet team continuously adds support for more cryptocurrencies on a monthly basis. It also encourages you to reach out to the team to add specific coins or tokens to Trust Wallet.
• NFT Storage: Trust Wallet enables users to store and access all their NFT collectibles on Ethereum and BSC. Crypto collectibles are secured on the blockchain and associated with a public address.
• Staking and Rewards: Trust Wallet offers built-in staking with selected cryptocurrencies, enabling users to earn interest on the crypto they store in their wallet.
• Flexible Purchases and Withdrawals: Unlike most crypto wallets, Trust Wallet allows users to purchase cryptocurrency with fiat currencies. You can purchase over 40 cryptocurrencies on Trust Wallet using a credit or debit card. Moreover, Trust Wallet has partnered with Ramp and MoonPay, enabling easy crypto-to-fiat withdrawals. It currently allows users to easily convert their cryptocurrency into fiat currencies directly within the Trust Wallet app.
• Cost & Fees: Trust Wallet is free to download and use and doesn’t charge fees for swaps or transactions in-app. The only fees you’re charged are blockchain network fees on cryptocurrency transactions. Users must pay the corresponding network fee, which may vary depending on network congestion. However, users can manually set their preferred gas and network fees, depending on the transaction’s urgency.

Trust Wallet Pros and Cons

Here’s a summary of Trust Wallet Pros and Cons at a glance:

Pros

• Multi-coin support
• NFT support
• Easy set-up & Intuitive user interface
• Built-in staking
• DApp browser
• Built-in DEX
• Easy Purchases

Cons

• Limited customer support: The team is only available via e-mail and doesn’t have a direct chat
• No cold storage: Trust Wallet doesn’t support hardware wallets for offline storage.

Conclusion

Trust Wallet aims to make cryptocurrency more accessible for everyone by enabling users to easily buy, send, receive, stake, trade, and store cryptocurrencies. 

It offers a user-friendly interface for managing cryptocurrencies, interacting with decentralized applications (DApps), and participating in DeFi protocols from the convenience of your smartphone.

Trust Wallet is a good fit for investors looking for a non-custodial, multi-coin wallet offering an all-in-one solution for all their crypto needs.

However, investors should take appropriate precautions and follow best practices to safeguard their assets when using any cryptocurrency wallet, including Trust Wallet.

Airdrop farming has become increasingly popular among crypto enthusiasts as a way to earn sizeable amounts of money with minimal effort. Some notable examples of successful airdrops include Optimism and Arbitrum, while upcoming airdrops like zkSync Era and SUI are already generating excitement. Now, it’s time for StarkNet’s $STRK airdrop, and with just a few simple steps, you could potentially change your life in just 10 minutes. In this article, we will guide you through the process of participating in the StarkNet airdrop and maximizing your earnings in the exciting world of crypto.

What Is StarkNet?

StarkNet is a Validity Rollup Layer 2 solution that provides high throughput, low gas costs, and retains Ethereum Layer 1 levels of security. It is designed to scale Ethereum by replacing heavy L1 computation with lighter and more cost-effective L1 verification using STARK proofs computed off-chain. This approach can be compared to a sudoku puzzle, where verifying a solution is much easier and faster than solving it from scratch.

StarkNet operates as a permissionless Layer 2 network over Ethereum and uses the most scalable and secure cryptographic proof system – STARK. It leverages the Cairo language, a Turing-complete programming language designed specifically for STARK proofs, to write its contracts.

Getting Started with the StarkNet Airdrop

In this section, we will outline the steps to participate in the StarkNet airdrop, both on Mainnet and Testnet.

Mainnet Strategy

1. Create a StarkNet wallet

Visit either Argent or Braavos to create your wallet.

2. Bridge ETH From Mainnet to StarkNet

Go to StarkGate > Connect Your Wallets > Select the amount of ETH you want to bridge.

3. Swap and Add Liquidity on Various Platforms

• Connect your wallet and swap any tokens or add liquidity on mySwapxyz

• Connect your wallet and swap any tokens or add liquidity on 10KSwap

• Connect your wallet and swap any tokens or add liquidity on JediSwap

4. Deposit and Borrow Tokens:

Connect your wallet and deposit liquidity on any pool at Nostra Finance.

5. Mint, Buy, and Sell NFTs

Connect your wallet, select StarkNet mainnet, and mint, buy, or sell NFTs at MintSquare NFT.

6. Mint Domain Names on StarkNet

Connect your wallet, choose your name, and select the registration period at Starknet ID.

Testnet Strategy

1. Request Testnet Tokens

Visit StarkNet Faucet to request testnet tokens.

2. Make Swaps

Perform 10-15 swaps on testnet platforms such as StarkDefi and Fibrous.

3. Mint, Buy, and Sell NFTs on Testnet

Connect your wallet, select StarkNet testnet, and mint, buy, or sell NFTs at MintSquare NFT.

4. Claim and Customize Profiles on StarkNet Social

Connect your wallet in StarkNet Testnet, claim your profile, customize your avatar, and follow other users at StarkNet Social

Tips and Reminders

Stay active on the network and don’t feel like you have to make all your transactions in one day.

To always get airdrop updates, check out the StarkNet airdrop thread.

By following these steps, you will be well on your way to participating in the StarkNet airdrop and maximizing your crypto earnings. Additionally, our crypto portfolio tracking tool will soon allow users to track their StarkNet coins, ensuring that you can keep track of all your investments in one place.

Conclusion

The StarkNet airdrop presents a unique opportunity for crypto enthusiasts to expand their portfolio and potentially earn significant rewards. As the popularity of airdrop farming continues to grow, staying informed and engaged in the crypto community will prove invaluable for maximizing your earnings.

With the CoinStats crypto portfolio tracking tool‘s upcoming support for tracking StarkNet coins, you’ll have a reliable and convenient way to manage all your investments in one place. By participating in the StarkNet airdrop and leveraging our platform, you can stay ahead in the rapidly evolving world of cryptocurrencies and capitalize on exciting new opportunities as they emerge.

From Bitcoin and Ethereum to less popular altcoins, there are thousands of cryptocurrencies to date, many of which struggle to bring mass awareness to the public and encourage adoption. And that’s where crypto airdrop comes in. 

Crypto airdrops are a marketing strategy used by cryptocurrency projects to send tokens to specified wallet addresses for free or in exchange for minimal promotional work. Some of the most lucrative airdrops, such as Uniswap, dYdX, LooksRare, Optimism, etc., resulted in free money of over $10,000, while Bored Ape Yacht Club owners received a cryptocurrency airdrop worth around $100,000 for every ape NFT they owned.

Cryptocurrency airdrops come in different forms and are designed to expand adoption, generate interest, and foster a thriving crypto community. Most crypto projects airdrop free tokens to generate buzz ahead of an anticipated launch or use the crypto airdrop model to reward early users.

While they may seem lucrative and help you make additional returns on your portfolio, crypto airdrops also carry some risks.

This article will tell you everything you need to know about crypto airdrops, including the best potential airdrops for 2023, how to get crypto airdrops, and more.

Let’s get right to it!

How Do Crypto Airdrops Work?

A crypto airdrop is a marketing method that involves the distribution of free crypto tokens to a user’s wallet to promote up-and-coming crypto projects. Airdrops aim to enhance the exposure of a crypto project and make the token valuable early on to stimulate its trade. They reward early adopters, incentivize the onboarding of new users, and grow their community to raise awareness of the project and encourage the trading of a newly issued token.

Crypto token airdrops have been around since 2014 when the Auroracoin project airdropped free AUR tokens. The project aimed at making AUR Iceland’s national cryptocurrency, so the citizens of Iceland received 31.8 AUR in the form of airdropped tokens. Since then, thousands of blockchain networks and cryptocurrency projects have used the airdrop method to increase awareness and promote adoption.

Cryptocurrency projects apply various crypto airdrop models requiring users to carry out minimal tasks to receive rewards. The most common crypto airdrops give out free tokens for simply signing up with the project or posting on social media. The crypto coins are sent directly to certain wallet address owners, who might have to pay a transaction fee for claiming the airdropped coins. Depending on the blockchain network the project is built on, the fees may vary from a few to hundreds of dollars per transaction.

Information about any potential airdrop can be found across social media, the project’s website, and cryptocurrency forums. Users can also set up an airdrop alert and keep up to date with the latest airdrops.

However lucrative as airdrops might seem, you should always research the project beforehand to avoid airdrop scams. Phishing schemes can be centered on decentralized and centralized exchanges alike. For example, in 2022, scammers targeted the users of Uniswap, one of the most popular decentralized exchanges, by promising a free airdrop of 400 Uniswap tokens worth around $2,000. A few traders connected their wallets to a dodgy website and sustained huge losses. Other airdrop scams ask for investments, your private key, or additional personal information.

What’s the Purpose of Crypto Airdrops?

A crypto project uses an airdrop as a marketing strategy to raise awareness about the project and encourage the trading and hodling of its native token. Airdrops also aim to create a vast network of users motivated to promote the project by winning community votes for exchange listings, etc.

Types of Crypto Airdrops

Some of the earliest airdrops rewarded users for simply holding bitcoin in their wallets. Bitcoin Cash (BCH) airdrop is a good example of this, where Bitcoin holders were given one BCH token per Bitcoin. But over the years, airdrops have evolved, and the most common types of airdrops are listed down below:

Standard Crypto Airdrop

A standard crypto airdrop often requires users to provide their wallet addresses and connect to the project’s website. Projects generally have a cap on how many tokens a wallet can receive.

Note that some projects may require KYC (know your customer) verification before receiving assets, requiring personal details, or even uploading proof of residence.

Bounty Airdrop

Bounty airdrops require users to complete specific tasks to increase project awareness in exchange for rewards. The tasks include signing up for the project or its newsletter, posting on social media about the project and tagging other users in the post, joining and participating in the Discord/Telegram channels, etc.

In a bounty airdrop, users receive points for completing specific tasks. The number of airdropped coins is directly proportional to the points collected by the user; the more points one has, the more tokens one can receive. Often a minimum threshold has to be reached to become eligible for a reward.

Holder Airdrops

Holder airdrop is generally held for an existing cryptocurrency project or a network. Projects use holder airdrops to distribute freshly minted native tokens to long-term holders. The airdrop occurs when a user holding specific tokens in their crypto wallet gets more tokens.

Projects often airdrop their tokens to holders of other tokens using the same blockchain network.

For example, in 2021, Gas DAO distributed tokens to individuals who had paid a certain threshold of Ethereum gas fees. 55% of Gas DAO tokens were airdropped to 634,429 eligible wallets.

Exclusive Airdrops

An exclusive airdrop is designed exclusively for specific users, often early adopters of a platform, before the project releases its native token. Exclusive airdrops reward loyal users for interacting with the platform and its protocols and aim to generate hype around a token launch. 

Some leading exchanges and aggregators have used the exclusive airdrop distribution model.

Raffle Airdrop

In a raffle airdrop, the rewards are given to wallets based on a lottery or a raffle. Some projects may require users to perform tasks to earn a raffle ticket, such as holding tokens, making social media posts, etc. Once the airdrop goes live, winners are selected randomly from raffle ticket holders.

NFT Airdrop

Non-fungible tokens ( NFTs ) are unique and non-interchangeable tokens that represent real or virtual assets on the blockchain. In an NFT (Non-Fungible Token) airdrop, projects or artists give out their newly minted NFTs for free to encourage people to generate buzz and incentivize new users.

NFT airdrops aim to increase NFT collection circulation and the number of enthusiastic followers.

How to Get Crypto Airdrops?

To get crypto airdrops, you must start a search for new airdrops on crypto price aggregators like CoinMarketCap, CoinGecko, Etherscan, Airdrop Alert, etc. 

If you’re searching for crypto airdrops on social media sites, you should only select projects with a large following and ecosystem to avoid scams.

After you select a crypto airdrop, you must follow its eligibility requirements, such as interacting with a DApp, signing up for a newsletter, posting about it on social media, etc. Holding a specific cryptocurrency or having interacted with a specific DApp in the past may automatically qualify you for an airdrop.

Once you’ve completed the required tasks, you should see the crypto airdrop in your associated crypto wallet on its official drop date. 

Tip: If a protocol announces an airdrop, it usually posts a link where you can check if your wallet address is eligible. If your address is eligible, but the airdrop keeps canceling, it could be that the airdrop congests the blockchain, and transactions cannot be processed. In that case, you need to try again later.

Best Crypto Airdrops for 2023

zkSync Airdrop

zkSync is a Layer 2 (L2) scaling solution built on the Ethereum blockchain. The project has no token yet, but it already has a large number of decentralized apps (DApps) running on its network. Users interacting with the protocol and the DApps on the network might be eligible to receive airdrops. Although there is no official announcement by the zkSync team, it’s rumored it would be one of the biggest airdrops in recent times.

Shardeum Airdrop

The Shardeum network is a smart contract platform built on the Ethereum Virtual Machine. The protocol will issue its own native SHM token and has already reserved 51 percent of its 500 million token supply for its community members. The team hinted on its FAQ page that 5% of its token supply would be allocated for airdrops. To be eligible, add Liberty to your wallet, request testnet SHM tokens, and interact with the smart contracts built on it. The team also stated that users could qualify for rewards/airdrops from DApp projects built on Shardeum in the future.

SUI Airdrop

The SUI blockchain is a Layer 1 project designed by former Meta employees.

In August 2022, Sui had a $SUI token airdrop for its Testnet Wave 1 and 2 validators when 2,000 SUI (subject to 1-year vesting) was distributed for participating in every testnet “wave.”

The $SUI token airdrop for its third testnet “wave” hasn’t been officially announced yet. However, the Sui team has stated in its blog post that they will distribute SUI tokens to early community members. The team also said that those spreading knowledge about Sui, onboarding developers, and testing and refining its applications would be part of Sui’s token allocation.

Plus, some other airdrops have a huge potential in 2023, such as Arbitrum airdrop, Zetachain, etc. As such, QUAI Network, an open-source proof-of-work blockchain network using merged mining to increase throughput and security, has a social media rewards program that will airdrop $QUAI tokens for engaging with their social media channels.

How to Receive Free Crypto Tokens Securely?

As with almost everything related to the crypto industry, airdrops are susceptible to bad actors, rug pulls, scams, etc. Hence, to earn airdrops in a secure manner, it’s important never to reveal your wallet’s private keys to anyone. Moreover, any airdrop project that asks for your private key is likely a scam designed to drain your wallet.

With so many ongoing airdrops, it’s paramount to perform due diligence and select legitimate projects before participating.

Conclusion

As the crypto industry has matured over the years, the number of crypto airdrops and how they’re conducted has also grown. Airdrops such as bounty, holder, exclusive, etc., are gaining popularity among users enabling them to earn free money, especially in a bear market. With Non-Fungible Tokens being the latest craze in the crypto space, NFT airdrops are surely going to be very popular.

Public-key cryptography (PKC) is an asymmetric encryption technique that relies on a pair of keys to secure data communication. The public key is the encryption key shared with everyone to receive transactions, and the private key is the decryption key that must be kept secret.

This technique is at the heart of cryptocurrencies and ensures the integrity and authenticity of crypto transactions.

What Is Cryptographic Key Encryption?

The encryption algorithm used in blockchains is the cryptographic key encryption method for encrypting and decrypting data. A cryptographic key is a random string of data, such as numbers and letters, generated to encrypt data and decrypt the encrypted data.

Cryptographic encryption can be symmetric key cryptography or asymmetric. In symmetric encryption, only a single key is used to encrypt and decrypt data. While in asymmetric encryption, two keys are required to encrypt and decrypt encrypted messages in a complex mathematical algorithm. The key pairs used in asymmetric cryptography are known as public and private keys. A public key is used to encrypt messages and is widely shared and publicly displayed, similar to your email address or bank account, to receive cryptocurrency. Instead, a private key is the decryption key used to decrypt messages and must be kept in secret, similar to your password, to safeguard your cryptocurrencies.

Public-key cryptography is used in cryptocurrency transactions to ensure that only the intended recipient can access the message. Integrity is ensured through asymmetric encryption because only a private key can decrypt the information encrypted with a public key. The decryption process requires checking that the received message matches the sent message, thereby authenticating that the data is untampered and unaltered.

History and Common Methods

In the early days of cryptography, distributing key pairs between two parties was quite challenging. The parties had first to exchange a key that had to be kept in absolute secrecy using a face-to-face meeting or a trusted courier and then use the key for sharing encrypted messages.

In our days, the Diffie–Hellman key exchange method allows two parties with no prior knowledge of each other to establish a shared secret key together over an insecure channel.  

Some of the most commonly used algorithms for generating public keys are Rivest-Shamir-Adleman (RSA), Elliptic curve cryptography (ECC), and Digital Signature Standard (DSS).

The ECC algorithm uses elliptic curves to generate keys and is used for digital signatures and key agreement. The RSA algorithm is the oldest cryptography system used in transmitting shared keys for symmetric key cryptography. DSS is a Federal Information Processing Standard specifying the algorithms that can be used to generate digital signatures used by NIST.

How Does Public Key Cryptography Work?

In public key cryptography, known as asymmetric encryption, anyone can encrypt messages using a public key, but you need a matching private key to decrypt the message. First, the unencrypted data, or plaintext, is put into a cryptographic algorithm using the public key. Then the plaintext comes out as random-looking data. And finally, anyone with the corresponding private key can decrypt the data and translate it back into plaintext.

For example, Jane (sender) wants to send 1 BTC to Alice (recipient). Jane knows Alice’s public key and uses it to encrypt the transaction. After receiving it, the transaction is decrypted using Alice’s private key. Alice should be the only person who can authorize the transaction, as nobody else knows her private key. 

Public key encryption can also be used to create digital signatures. Here are the steps for generating a digital signature:

1. The sender selects the file to be digitally signed.
2. The sender’s computer calculates the unique hash value for the file content.
3. The hash value is encrypted with the sender’s private key, creating the digital signature.
4. The original file and the digital signature are sent to the recipient.
5. The recipient uses the associated document application, which identifies that the file has been digitally signed.
6. The receiver’s computer decrypts the digital signature using the sender’s public key and verifies that the decrypted hash value matches the hash of the original file.

Differences Between Public and Private Keys

Public Key

The public key is the user’s public address on the blockchain used to receive cryptocurrencies. Anyone can use it to send digital currencies to you; however, only you can spend them using your private key. The public key is used to encrypt messages before sending.

Private Key

A private key is similar to your house’s front door. The public knows its location because the address (public key) can be easily found, but only you with a key to the house’s front door (private key) can enter it. Private keys are used to decrypt messages created with the corresponding public key. The private key is kept secret; if lost, restoring or accessing your funds is impossible.

Risks Associated With Public Key Encryption

While public key cryptography’s indisputable advantage is robust data security, there are still some risks associated with it, such as:

Low-Quality Key

A poorly crafted asymmetric key algorithm, i.e., too short, is a security risk. So, the encryption key issuance, renewal, and revocation should be managed with great care.

Loss of Private Key

As mentioned earlier, private keys can’t be shared publicly and should be kept private and secure. This is because once the private key is lost, there is no way to access data or funds stored in a crypto wallet.

Man-in-the-Middle Attacks

Public Key Encryption is also vulnerable to a Man-in-the-Middle (MitM) Attack in which the communication of public keys is intercepted by a third party (the “man in the middle”) and then modified to provide different public keys instead.

The primary way to establish a secure connection with servers, you must first check their digital certificates.

Secure Socket Layer and Transport Layer Security connections SSL / TLS uses public key encryption to enable the use of Hypertext Transfer Protocol Secure to create a secure connection between the server and client. The communication session is first established using asymmetric encryption to verify the identities of both parties and exchange a shared session key that enables a symmetric cipher.

Conclusion

Cryptography is essential for securing cryptocurrency transactions and ensuring your data hasn’t been tampered with. That’s why private, and public keys are critical in authorizing these transactions.

Remember to keep your private keys private and secure at all times. Write down your phrase on paper and store it in a fireproof safe. Also, go the extra mile by having your private keys engraved on a metal plate to protect them from high temperatures, moisture, and aggressive chemicals!